Fraser Valley Real Estate Market Weakens as Sales and Prices Continue to Edge Downward

Fraser Valley Real Estate Market Update – October 2023

In the midst of sustained high-interest rates, the Fraser Valley real estate market witnessed a consecutive decline in property sales and new listings throughout October. Consumers, adopting a cautious approach, deferred home buying and selling decisions in response to the prevailing economic conditions.

Key Highlights:

• Sales and Listings Overview:
  • The Fraser Valley Real Estate Board recorded 970 transactions on its Multiple Listing Service® (MLS®) in October, marking a 12% decrease from the previous month and the fourth consecutive decline since the 12-month high of 1,935 sales in June.
  • New listings also experienced a decline, totaling 2,535, reflecting an 11% drop from September and a substantial 28% decrease since the peak in May at 3,533.
• Market Impact of Interest Rates:
  • Narinder Bains, Chair of the Fraser Valley Real Estate Board, highlighted the tangible impact of sustained high-interest rates on the overall market. This trend has persisted throughout the latter half of the year, with anticipation that it will continue until a downward movement in the policy rate is observed.
• Active Listings and Market Conditions:
  • Active listings in October reached 6,580, registering a modest increase of less than 1% over the previous month and a 17% surge compared to October 2022.
  • The sales-to-active listings ratio stood at 15%, indicating balanced conditions in the overall market. However, detached houses dipped into buyers’ market territory at 12%, with the market considered balanced when the ratio is between 12% and 20%.
• Strategies for Market Adjustment:
  • Baldev Gill, CEO of the Fraser Valley Real Estate Board, emphasized the critical role of pricing and financing strategies in the evolving market. A knowledgeable professional REALTOR®, armed with the latest comparative market data and neighborhood insights, is key to determining optimal market timing.
• Benchmark Price Activity (October 2023):
  • Single Family Detached: The Benchmark price for an FVREB single-family detached home stood at $1,503,300, reflecting a 1.5% decrease from September 2023 and a 4.8% increase from October 2022.
  • Townhomes: With a Benchmark price of $845,300, townhomes experienced a 0.4% decrease compared to September 2023 and a 4.7% increase from October 2022.
  • Apartments: The Benchmark price for apartments/condos settled at $545,400, indicating a 0.1% decrease from September 2023 and a notable 3.7% increase from October 2022.

As the market continues to navigate the challenges posed by interest rate dynamics, stakeholders are advised to stay informed and leverage professional expertise for informed decision-making. The real estate landscape remains dynamic, requiring a strategic approach aligned with prevailing economic realities.

Find the Fraser Valley Real Estate Board Statistics Package here. 

Thanks, 
Sunny Kaler – PREC
REMAX Blueprint Realty